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mework Mountain Racing Total Bikes Bikes $932,000 $270,000 $404,800 $ 250,000 462,000 111,000 193,000 158 000 478,009 159.00 211.ee 100,000 Sales Variable manufacturing and selling
mework Mountain Racing Total Bikes Bikes $932,000 $270,000 $404,800 $ 250,000 462,000 111,000 193,000 158 000 478,009 159.00 211.ee 100,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising. traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses Total fixed expenses Net operating income (loss) 69,200 8,300 40,5 20,400 44,000 20,500 7,800 15,700 114,500 40,400 38,900 25, 200 186,400 54,400 30, BO 51,600 414,100 123,200 168,000 122 900 $ 55,900 $ 35,000 $43,000 $(22,900) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out Required: 1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes? 2. Should the production and sale of racing bikes be discontinued 3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long run profitability of the various product lines Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required What is the financial advantage (disadvantage) per quarter of discontinuing the facing Bikes? Roquired 2 >
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